Encore Capital Group Inc., a San Diego-based debt buyer, announced the resolution of litigation brought against the company earlier this year by the Texas attorney general's office. Terms of the resolution were not disclosed.
Texas Attorney General Greg Abbott in July said his office had filed a suit against Encore and its subsidiaries – Midland Funding LLC and Midland Credit Management Inc. - for allegedly committing multiple violations of Texas collection laws and the Texas Finance Code (
According to the enforcement action, Midland Funding's collection letters contained "very little information about the debt they were attempting to collect, provided no supporting documentation and included no proof that they actually acquired the debt from the original creditor," according to investigators.
Court documents filed by investigators indicate the defendants also sometimes targeted the wrong individuals for collection and attempted to collect debts that had been fully or partially paid.
Encore officials noted that the resolution was consistent with what the company announced with its financial results for the third quarter ended Sept. 30 (
